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Ontario signs deal for electricity from Quebec in bid to defuse anger over hydro bills

The seven-year pact — saving the province $70 million — will trim 1 million tonnes of greenhouse gas emissions annually.

Quebec has agreed to “store” hydroelectric power until Ontario needs it. To do that, Hydro Quebec will pump enough water behind its dams to produce 500 gigawatt hours of hydroelectricity on demand — enough to power North Bay for a year.
(Mario Beauregard / THE CANADIAN PRESS Images)

In a bid to defuse anger over skyrocketing bills, Ontario will announce a new deal Friday to buy more hydroelectric power from Quebec.

The seven-year pact — saving the province $70 million — will have only a “small” impact on household electricity prices but will trim 1 million tonnes of greenhouse gas emissions annually, a senior Ontario official said Thursday.

That’s because Ontario won’t need to rely as much on natural gas-fired power plants while the Darlington nuclear power station is refurbished.

The agreement comes as Premier Kathleen Wynne’s government holds a joint cabinet meeting with her Quebec counterpart, Philippe Couillard, following months of behind-the-scenes negotiations.

“These are great ways of making use of our two electricity systems,” the official, speaking on condition of anonymity, said of the talks in which Quebec also agreed to “store” hydroelectric power until Ontario needs it.

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To do that, Hydro Quebec will pump enough water behind its dams to produce 500 gigawatt hours of hydroelectricity on demand — enough to power North Bay for a year.

“We can call it back when we need it most,” said the official, who declined to reveal what prices Ontario will pay for the power.

“That allows us to achieve savings and get better use of our renewable fleet,” he added, noting this province has 40 per cent of the wind turbines operating in Canada.

In effect until 2023, the agreement allows Ontario to import up to two terawatt hours of clean hydroelectric power a year — enough to serve a city the size of Kitchener.

Those imports will not require new transmission lines, officials said.

Wynne’s government, which is trailing the Progressive Conservatives in recent polls with a provincial election looming in June 2018, has been under daily attack from critics over hydro prices and has been taking steps to give consumers a break.

On Wednesday, the legislature unanimously passed legislation waiving the 8 per cent provincial tax on electricity starting in January. As well, about 330,000 households in remote parts of rural Ontario will get up to 20 per cent off their bills.

Under an expanded conservation measure, another 1,000 companies will be given cheaper electricity rates in exchange for reducing their use during periods of peak demand.

The government has also cancelled plans for another $3.8 billion in renewable energy like wind and solar.

“We have an adequate supply of power,” Energy Minister Glenn Thibeault said Thursday.

Ontario and Quebec have also agreed to join forces on improvements for electric vehicles in hopes more motorists will buy them, further reducing greenhouse gas emissions as a cap-and-trade program comes into effect.

Ontario has pledged to cut emissions to 37 per cent below 1990 levels within the next 14 years.

There will be an expansion of charging stations and better signs making drivers aware of them as they travel major routes between the two provinces, another senior Ontario government official said.

“We want to create a more seamless experience for people.”

There will be no new incentives for the purchasing of electric vehicles, however.

Ontario announced an increase in subsidies earlier this year, with a maximum of $14,000 per vehicle if it has an extra-large battery, but most electric cars qualify for an incentive of between $6,000 and $10,000. Vehicles over $75,000 qualify for only a $3,000 subsidy.

Transportation emissions account for about 35 per cent of all greenhouse gases released into the atmosphere, contributing to climate change.

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